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MARKETING MANAGEMENT 12 th edition

MARKETING MANAGEMENT 12 th edition. 18 Managing Mass Communications. Kotler Keller. Chapter Questions. What steps are involved in developing an advertising program? How should sales promotion decisions be made?

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MARKETING MANAGEMENT 12 th edition

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  1. MARKETING MANAGEMENT12th edition 18 Managing Mass Communications Kotler Keller

  2. Chapter Questions • What steps are involved in developing an advertising program? • How should sales promotion decisions be made? • What are the guidelines for effective brand-building events and experiences? • How can companies exploit the potential of public relations and publicity?

  3. Advertising Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

  4. Procter & Gamble’s Advertising History

  5. Figure 18.1 The Five M’s of Advertising

  6. Advertising Objectives Informative advertising Persuasive advertising Reminder advertising Reinforcement advertising

  7. Factors to Consider in Setting an Advertising Budget Stage in the product life cycle Market share and consumer base Competition and clutter Advertising frequency Product substitutability

  8. Developing the Advertising Campaign • Message generation and evaluation • Creative development and execution • Social responsibility review

  9. Positioning statement Key message Target market Objectives Key brand benefits Brand promise Evidence of promise Media Background Creative considerations Creative Brief

  10. Advantages Reaches broad spectrum of consumers Low cost per exposure Ability to demonstrate product use Ability to portray image and brand personality Disadvantages Brief Clutter High cost of production High cost of placement Lack of attention by viewers Television

  11. Advantages Detailed product information Ability to communicate user imagery Flexibility Ability to segment Disadvantages Passive medium Clutter Unable to demonstrate product use Print Ads

  12. Print Ad Components Headline Picture Signature Copy

  13. Print Ad Evaluation Criteria • Is the message clear at a glance? • Is the benefit in the headline? • Does the illustration support the headline? • Does the first line of the copy support or explain the headline and illustration? • Is the ad easy to read and follow? • Is the product easily identified? • Is the brand or sponsor clearly identified?

  14. Media Selection Reach Frequency Impact Exposure

  15. Figure 1.2 Relationship among Trial, Awareness, and the Exposure Function

  16. Reach x Frequency = GRPs

  17. Choosing Among Major Media Types • Target audience and media habits • Product characteristics • Message characteristics • Cost

  18. Newspapers Television Direct mail Radio Magazines Outdoor Yellow pages Newsletters Brochures Telephone Internet Major Media Types

  19. Table 18.2 Marketing Communication Expenditures (2001)

  20. Place Advertising • Billboards • Public spaces • Product placement • Point-of-purchase

  21. Measures of Audience Size • Circulation • Audience • Effective audience • Effective ad-exposed audience

  22. Figure 18.3 Classification of Advertising Timing Patterns

  23. Factors Affecting Timing Patterns • Buyer turnover • Purchase frequency • Forgetting rate

  24. Media Schedule Patterns • Continuity • Concentration • Flighting • Pulsing

  25. Evaluating Advertising Effectiveness • Communication Effect Research • Consumer feedback method • Portfolio tests • Laboratory tests • Sales-Effect Research

  26. Sales Promotion Collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.

  27. Consumer-directed Samples Coupons Cash refund offers Price offs Premiums Prizes Patronage rewards Free trials Tie-in promotions Trade-directed Price offs Allowances Free goods Sales contests Spiffs Trade shows Specialty advertising Sales Promotion Tactics

  28. Using Sales Promotions Establish objectives Select tools Develop program Pretest Implement and control Evaluate results

  29. Events and Experiences • $11.14 billion spent on sponsorship in 2004 • 69% sports • 10% tours • 7% festivals, fairs • 5% arts • 9% causes

  30. Why Sponsor Events? • To identify with a particular target market or life style • To increase brand awareness • To create or reinforce consumer perceptions of key brand image associations • To enhance corporate image • To create experiences and evoke feelings • To express commitment to community • To entertain key clients or reward employees • To permit merchandising or promotional opportunities

  31. Using Sponsored Events Establish objectives Choose event opportunities Design program Implement and control Measure effectiveness

  32. Ideal Events Audience closely matches target market Event generates media attention Event is unique with few sponsors Event lends itself to ancillary activities Event enhances brand image of sponsor

  33. Public Relations Functions • Press relations • Product publicity • Corporate communications • Lobbying • Counseling

  34. Marketing Public Relations Functions • Assist in product launches • Assist in repositioning mature products • Build interest in a product category • Influence specific target groups • Defend products • Build corporate image

  35. Major Tools in Marketing PR • Publications • Events • Sponsorships • News • Speeches • Public Service Activities • Identity Media

  36. Steps in Marketing PR Establish objectives Choose messages Choose vehicles Implement and control Measure effectiveness

  37. Marketing Debate • Has TV Advertising Lost Power? Take a position: • TV advertising has faded in importance. 2. TV advertising is still the most powerful advertising medium.

  38. Marketing Discussion • What are some of your favorite TV ads? Why? How effective are the message and creative strategies? How are they building brand equity?

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